Healthcare Leadership Trends for 2025
The industry generally views value-based care (VBC) favorably as a growth strategy that aligns with emerging healthcare economics. Yet uptake has been slow. While nearly all hospitals have at least one VBC program in place that covers 49% of their patient populations, only 17% generate over 20% of net patient revenue from the various VBC payment modes. 1 Under 30% of leaders believe their current organizational capabilities are sufficient for VBC. 2 AI is seen as a major enabler of all of the growth initiatives. The Trends survey had leaders weigh in on the leading barriers to effective deployment over the next 12-18 months:
54%
43%
37%
34%
30%
LACK OF APPROPRIATE TALENT
CULTURAL BARRIERS
HAVE NOT IDENTIFIED STRONG USE CASES
DATA QUALITY PROBLEMS
ABILITY TO INVEST FINANCIALLY
3. Leadership Job Intention and Opportunities Heighten Retention Risks
A stable, productive workforce can be a major strategic asset. The same holds for leadership, making retention a vital priority. As a benchmark, the turnover rate across industries is 5.4% for top executives and 7.6% for management. 3 Trends explored multiple facets of the retention issue. Career satisfaction A helpful starting point in turnover risk assessment is leadership satisfaction. This year’s Trends results confirmed an ongoing slow erosion in satisfaction, though levels remain reasonably strong. Overall, 79% are extremely or somewhat satisfied with their job, down from 82% the prior year. Those categorizing themselves as extremely satisfied fell from 38% to 32%. The somewhat satisfied group, a designation implying some risk, ticked up two points. Tenure matters. The survey saw 74% satisfaction from leaders who have been at their current job between 1 and 5 years, compared to 82% for those with more than 5 years. Monitoring leaders earlier in their tenure can pay retention dividends.
1 VMG Health, Health System Leader Expectations for 2024, January 2024. 2 Forvis Mazars, Mindsets: Executive Leadership Report, June 2024. 3 Mercer, “Results of the 2024 US and Canada Turnover Surveys,” September 5, 2024.
© B.E. Smith 2025
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